Biocon announced that the Board of its subsidiary Biocon Biologics has approved a Rs 1, 125 crore ($150 million) capital injection from Goldman Sachs. As per the terms of the proposed agreement, Goldman Sachs will be issued Optionally Convertible Debentures at a post money equity valuation of $3.94 billion.

The transaction is subject to customary approvals and conditions.

Kiran Mazumdar-Shaw, Executive Chairperson, Biocon, said, “This transaction is a part of the overall strategic plan of value creation for our shareholders through Biocon Biologics.”

Dr Christiane Hamacher, CEO, Biocon Biologics, said, “This capital injection by Goldman Sachs will enable us to make prudent investments in R&D, high-quality manufacturing, as well as, establish a global commercial footprint. We are confident of achieving our aspiration of serving five million patients through our biosimilars portfolio and attaining a revenue target of $1 billion by FY22.”

Som Krishna, a managing director in the Merchant Banking Division at Goldman Sachs, said, “The global growth of biosimilars, coupled with collaborative regulatory pathways, is taking place at a rapid pace to drive market competition, budget sustainability for healthcare systems and improved patient access to treatments. Biocon Biologics, with a proven R&D track-record and established worldwide strategic partnerships, is well-positioned to continue to grow and be a major global player in this dynamic segment of the pharmaceutical industry.”

Biocon Biologics has a large biosimilars portfolios globally, spanning recombinant human Insulin (rh-Insulin), insulin analogs, monoclonal antibodies and therapeutic proteins for oncology, immunology and other chronic disease areas. Biocon Biologics has the full spectrum of insulins (regular, basal and rapid) in its pipeline.

Biocon Biologics has launched three products in the US, biosimilar monoclonal antibody (Trastuzumab), a therapeutic protein (Pegfilgrastim) and an Insulin analog (Glargine) for patients in the US, through its partner Mylan.